Institutional crypto funds experience the most capital inflows For the first time in three months
CoinShares statistics indicate a weekly influx of $193 million, with almost half of that amount going to Bitcoin alone. Solana is also attracting notice and just set a new record.
According to CoinShares statistics released Tuesday, institutional investment in cryptocurrencies is at its highest level in three months, a substantial increase from the previous week’s $47 million outflow.
According to the Weekly Report on Digital Asset Fund Flows, investment products for digital assets had total inflows of $193 million last week, the highest level since early December 2021.
The last time investment levels approached the present level was during the week ending Dec. 3, when $184 million in inflows occurred.
The fund flows were heavily weighted toward Bitcoin (BTC), with just over 50% of money coming into Bitcoin-based products, which witnessed inflows totalling $98 million.
Solana (SOL) came in second place, with $87 million in weekly inflows, CoinShares reporting that this is the “biggest single week of inflows on record.” SOL-based funds currently account for 36% of institutional organisations’ assets under management, making it the second biggest cryptocurrency behind Ether (ETH). Inflows into ETH-based funds totaled barely $10.2 million last week.
Europe contributed significantly, with enterprises apparently buoyed by the news that the measure prohibiting proof-of-work (PoW) mining failed to pass. Last week, the area accounted for 76% of inflows, or around $147 million.
The report’s findings stand in stark contrast to those from the previous week, when $49.4 million was withdrawn from BTC and ETH by largely North American corporations due to fears about rising crypto regulations.
Cash inflows from institutional investors correspond with Bitcoin’s recent climb over $48,500 at one time. The same was true for Ether, which reached a high of almost $3,300.
Nexo and Amber Group executives highlighted the “exponential” expansion of institutional investment in cryptocurrencies last week at the Blockchain Africa Conference 2022, noting that although institutional onboarding has increased, there may still be impediments to entrance. According to Kalin Metodiev, co-founder and managing partner of Nexo, the majority of enterprises may assert that the cryptocurrency market is “still too unpredictable.”
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